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Online Seminar

EMPLOYER USE OF PTO BANKS IS GROWING

May 28, 2012

PTO banks, which combine multiple types of leave such as vacation, sick, and personal days into one “bucket” and allow employees to use the leave as they see fit, tend to be more prevalent among large employers and those in the health care and insurance industries, according to Paid Time Off: The Elements and Prevalence of Consolidated Leave Plans, a paper released May 15. Management, professionals, non-union workers, and full-time employees are more likely to have access to PTO banks
than are other workers, noted the paper, sponsored by CLASP, an organization that focuses on policy issues affecting low-income people, and the Institute for Women’s Policy Research.

BLS reported in March 2011 that about 19 percent of private industry employees had access to a PTO bank, the paper noted, while 18 percent of workers had access to such banks in March 2010.

PTO banks are typically perceived to be cheaper and less trouble for employers if employees don’t need to provide a specific reason for taking leave, they reduce recordkeeping requirements and are more simple to administer.

Also, WorldatWork, a global human resources association based in Scottsdale, Ariz., found that employers’ use of PTO banks is increasing more dramatically. WorldatWork noted in a 2010 report titled Paid Time Off Programs and Practices that 28 percent of employers surveyed in 2002 said they used PTO banks, 33 percent said they used them in 2006, and 40 percent said they used them in 2010.   05.21.2012